Thursday, March 7, 2013

SACRAMENTO, CA—Reginald Dodson Sr., 42, of Tracy, pleaded
guilty today to mail fraud in connection with a mortgage fraud scheme,
United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Internal Revenue
Service-Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorney Michael Beckwith is prosecuting the
case.
According to court documents, between October and December 2006,
Dodson knowingly participated in a scheme to obtain money and property
by means of false and fraudulent representations and promises. Buena
Marshall, 67, of Sacramento, recruited Temika Reed, 32, of Bay Point, an
unqualified straw buyer, to purchase seven properties at inflated
prices using, in most cases, 100 percent financing. Marshall, a licensed
real estate salesperson, acted as Reed’s agent for four of the seven
property purchases. Deborah Loudermilk, 55, of Suisun City, also a
licensed real estate salesperson, acted as Reed’s agent for two of the
seven property purchases. Dodson, who worked for W.B. Financial, was the
loan officer on three of Reed’s seven property purchases.
Marshall and Loudermilk structured each of Reed’s real estate
transactions so Reed, as the buyer, and others could receive money back
from the respective sellers. These “kickbacks” were part of a
cash-back-to-buyer scheme.
Dodson prepared and submitted loan applications that had false
information, regarding, Reed’s employment, income, and intent to occupy
the properties as her primary residence. He also failed to disclose to
certain lenders other properties being purchased by Reed. Finally,
Dodson had co-defendant Kadesta Harris, 58, of Suisun City, sign two
Verification of Employment letters stating Reed worked for Harris’
company. The various false claims on Reed’s mortgage applications caused
three lenders to provide financing to an otherwise unqualified
borrower. Dodson’s conducted resulted in losses of approximately
$758,940 to non-federally insured financial institutions.
Dodson is scheduled to be sentenced by U.S. District Judge Garland E.
Burrell Jr. on May 10, 2013. Reed pleaded guilty on September 21, 2013;
she is scheduled to be sentenced on March 29, 2013.
The remaining defendants in this case including co-defendant Jake
Weathers, 37, of Sacramento, are scheduled for a status conference
before Judge Burrell on March 29, 2013. The charges against them are
only accusations, and they are presumed innocent until and unless proven
guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face a maximum statutory penalty of 20
years in prison, a $250,000 fine, and a three-year term of supervised
release. Any sentence, however, would be determined at the discretion of
the court after consideration of any applicable statutory factors and
the Federal Sentencing Guidelines, which take into account a number of
variables.